FRANKFURT, Germany (AFP) — Adidas, the German maker of sportswear and equipment, said Wednesday that it is raising its full-year forecasts after notching up better-than-expected growth in the first three months.
“In light of the strong brand momentum, which is reflected in the better than expected first quarter performance, the group has increased its 2016 financial outlook,” Adidas said in a statement.
“Management now projects sales to grow at a rate of around 15 percent in 2016,” when adjusted for exchange rate fluctuations, whereas Adidas had previously been pencilling in growth of between 10 and 12 percent, the statement said.
“As a result, net income from continuing operations is now forecast to grow at a faster rate than the top line and increase between 15 and 18 percent,” compared with an earlier forecast of 10-12 percent, it continued.
In the first three months of the current year, Adidas sales were up 22 percent in currency-adjusted terms at 4.8 billion euros ($5.4 billion).
Underlying or operating profit jumped by 35 percent to 490 million euros and net profit was up 38 percent at350 million euros.
Adidas said it would publish full details of its first-quarter earnings on May 4.
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